Ed Vaizey: 'Tech will have plenty of homes to go to within the European Union if we were to leave'

Tech companies could abandon the UK if it leaves the European
Union, digital economy minister Ed Vaizey warned on Thursday.

Vaizey told Business Insider he is concerned that tech companies
of all shapes and sizes could leave for other European nations if
a Brexit occurs.

Speaking in an exclusive interview, Vaizey said: "With countries
like France and Germany very focused on tech, and the reputation
of some of the Baltic states, tech will have plenty of homes to
go to within the European Union if we were to leave."

Tech giants like Google, Microsoft, Salesforce, Cisco, and Huawei
have created sizable outposts in the UK that employ tens of
thousands of people. There are also thousands of tech startups
across the nation, particularly in London, that employ large
workforces between them.

Vaizey believes that tech companies get better access to talented
workers and capital by being a part of the EU. He's also a firm
believer in the European single market, which gives UK tech
companies access to 500 million consumers.

"Clearly if we were to leave the European Union it would make
that [access] much harder. It would make it a less attractive
place for investors to come to invest in tech companies and I
think they might well start to look at opportunities in other
countries," said Vaizey. "I think other European countries would
not be slow in making one easy comparison which is we’re in the
union and they’re not."

Vaizey's comments, made at the Salesforce World Tour conference
on Thursday, come less than a week after a Berlin-based venture capitalist said a
Brexit would make it more complicated for his firm to invest in
UK tech companies. They also come after Tech City UK, a
government-funded organisation that aims to support the UK tech
sector, found that seven out of 10 tech founders and
investors want the UK to remain within the EU.

Microsoft has also come out against a Brexit, saying Britain's
membership in the EU makes it one of the most attractive places
for Microsoft to make investments.

Tech City UK is concerned that big commitments to the UK – such
as Google’s Kings Cross campus – may not materialise in future,
if London is no longer seen as a gateway to the EU market.

Eileen Burbidge, partner at Passion Capital and Chair of Tech
City UK, said in a statement: "London is the biggest tech centre
in Europe and attracts the brightest and best talent. Founders
and investors fear that advantage would be lost if the UK leaves
the EU. We don’t really know what would happen and that
uncertainty is dangerous. Would companies move their
headquarters? Would there be a flight of capital from across the
UK? The chances are that it would increase everyone’s costs and
lead to slower growth in the overall UK economy from London and
the regions alike, potentially for years to come."